The IRS’s Tea Party crackdown

The Obama administration was scrambling to distance itself from a growing scandal at the Internal Revenue Service.

What happened

The Obama administration was scrambling to distance itself from a growing scandal at the Internal Revenue Service this week, after it was revealed that the agency had singled out Tea Party–affiliated groups seeking tax-exempt status for extra scrutiny. President Obama called the IRS’s focus on conservative groups “intolerable and inexcusable,” and Attorney General Eric Holder announced that the FBI and Justice Department had opened a criminal investigation into the actions of IRS employees. An inspector general’s report said problems at the agency began in 2010, when IRS employees in Cincinnati started screening for the terms “Tea Party” or “Patriots” in the titles of groups seeking to qualify as “social welfare” organizations. Unlike charities, tax-exempt social welfare groups are allowed to participate in politics so long as that is not their primary purpose. IRS demands for extensive paperwork about Tea Party applicants’ activities forced them to wait up to three years for tax-exempt status, while liberal groups were approved in as little as nine months.

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